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Construction News

21 October 2025

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Unclaimed grid rebates costing developers billions

5 days 65% of UK developers are unaware of IDNOs and the AAV rebates that dramatically reduce grid connection costs.

Turner & Townsend鈥檚 latest market intelligence report on UK construction highlights that grid access has overtaken planning as the biggest bottleneck for developers. As demand for electricity rises developers are facing increased costs and long waits for viable connections 鈥 but there鈥檚 a simple solution which most developers are unaware of.

IDNO research shows that 65% of developers, facilities managers and sustainability leaders are unaware of Independent Distribution Network Operators (IDNOs) and the rebates they offer. These Asset Adoption Values (AAVs) can cut grid connection costs dramatically.

鈥淒evelopers are missing out,鈥 says Suzanna Lashford, Head of Business Development at Vattenfall IDNO. 鈥淭his is effectively free money 鈥 a rebate that offsets capital expenditure. But more than half the people procuring grid connections in construction and the public sector are unaware of IDNOs and the rebates we can offer.鈥

The impact of working directly with an IDNO is clear, in one example Vattenfall cut a developer's grid connection costs by 95% for a student housing scheme in Bath. 鈥淭he original quote from the local DNO was significantly higher than expected, but Vattenfall offered a much more competitive solution that made a real difference to the viability of the scheme鈥 says Ron Plunz, Director at Alumno. 鈥淭he transparency, support and expertise we received were outstanding throughout.鈥

Too often, developers leave their contractors or Independent Connection Providers (ICPs) to specify how their grid connection is procured. In some cases, rebates are retained by the ICP or lost entirely if the local DNO is used instead. That means longer lead times, higher costs, and missed opportunities. 鈥淒evelopers should see IDNOs as strategic partners鈥 adds Lashford. 鈥淪electing an IDNO yourself is one of the simplest ways to unlock significant savings for your development.鈥

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To make this process even easier, Vattenfall IDNO has launched a Simple Grid Consultancy service. Aimed at sub-2MVA projects, it provides feasibility studies, Point of Connection applications, route mapping, mini tenders for contestable works, and free legal support for land rights. Backed by Vattenfall鈥檚 Grid Capacity Insights Platform, the service helps identify sites with available power and avoids failed grid applications.聽
Crucially, the service also comes with a money-back guarantee: if Vattenfall cannot save a client money on their overall connection fees, the consultancy charge is refunded.聽

鈥淕rid access has become the new bottleneck,鈥 says Stewart Dawson, Managing Director at Vattenfall IDNO. 鈥淥ur consultancy offers early clarity, sound technical advice, and clear cost-saving strategies without locking developers into long-term contracts.鈥

In a market where every pound matters, grid connections are too important to leave in someone else鈥檚 hands. By choosing to work with an IDNO instead of their local DNO, developers can reduce costs, de-risk projects, and accelerate connection time frames.

Why leave money on the table? See how Vattenfall IDNO鈥檚 Simple Grid Consultancy can cut your next project鈥檚 costs.聽

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